Tag: retirement fund

It is sometimes said that the 'law is an ass' when one thinks the law is too rigid, unnecessary or ridiculous. The complainant sought payment of a surplus benefit following the death of her husband who was a member of the Auto Workers Provident Fund.

September is Heritage Month in South Africa. As a diverse but also divided society, building a shared view of our heritage is very much a work in process. Nonetheless, all South Africans have an interest in sharing in a more prosperous economy with more jobs and less poverty.

National Treasury published the latest Draft Tax Bills on 28 July 2021, which incorporate the tax proposals made in the 2021 Budget. Highlighted are five key changes proposed by government that taxpayers need to be aware of.  

South Africa has one of the lowest household savings rates in the world. To encourage the culture of savings, the government introduced tax-free investment and tax-free savings accounts in 2015 to incentivise good savings habits.

Proposed changes to the Pensions Funds Amendment Bill, currently before Parliament’s Standing Committee on Finance, which will allow retirement fund members to access a portion of their retirement savings in cash before retirement as a guarantee for a loan, should be viewed with caution.

Have you ever underestimated someone simply because you didn’t really know them? This is also true when it comes to financial benefits, particularly those we access through our employer, like group insurance. Unfortunately many employees do not fully understand or appreciate the insurance benefits they have through their employer; although the current pandemic is certainly reminding all of us how important it is to have financial certainty in the event of the unexpected, like disability, critical illness or death.

Generating long-term economic growth and employment is the most sustainable way to boost tax revenues and stabilise the debt-to-GDP ratio, especially if augmented by the reduction in government spending and the restructuring of spending towards investment.

Although the official statistics for South Africa’s divorce rate during COVID-19 are yet be released, globally, the pandemic sent divorce rates soaring by up to 30% or more during 2020. According to DIY Legal, South Africa ranks in 83rd place out of 154 countries for divorce. 

The 2021 Budget was tabled to Parliament on 24 February 2021 by South African Finance Minister Tito Mboweni.

Changes to retirement benefits for provident fund members, initially meant to come in five years ago and now scheduled for next March, will see tax uniformity for all who contribute towards retirement. These changes, in terms of the Taxation Laws Amendment Act, will also encourage greater savings, something South Africa desperately needs as it seeks to crawl its way out of an economic hole.